Aug 26 (Reuters) -ICE cotton futures fell from more than a month highs hit earlier on Monday, weighed down by declining grain prices and growing concerns over demand amid escalating geopolitical tensions between the U.S. and China.

* Cotton contracts for December CTZ4 fell 0.63 cent, or 0.89%, at 70.28cents per lb at 11:49 a.m. EDT(1549 GMT). Prices had reached their highest level since July 19,earlier in the session.

* "Grains are risk-off with the U.S. dollar recovering while rising geopolitical tensions on the U.S.-China front are not price friendly," said Valentin Olah, risk management consultant at StoneX Group.

* The dollar rallied from an eight-month low on Monday as geopolitical tension in the Middle East intensified, prompting investors to seek shelter in these currencies. A higher dollar makes commodities priced in dollars, like cotton, expensive for overseas buyers. USD/

* Chicago corn fell to its lowest in around four years on Monday and soybeans also dropped after a closely watched crop tour of key growing areas forecast bumper U.S. harvests. GRA/

* "Rains have finally appeared in the 6-10 days radar, which should relief drought conditions in some areas, but in Texas, it's already late for some of the dryland," said Olah.

* The United States impose sanctions on more than 400 entities and individuals last week on Friday for supporting Russia's war effort in Ukraine, the State Department said, including Chinese companies that U.S. officials believe are helping Moscow skirt Western sanctions and build up its military.

* China is the biggest consumer of natural fibre, while the U.S. is the top exporter.

* Cotton speculators increased their net short position by 2,847 contracts to 59,217 in the week of Aug. 20.

* Elsewhere, the Dow and the S&P 500 inched up in choppy trading as markets cemented bets on an imminent rate cut by the Federal Reserve. .N

Reporting by Anmol Choubey in Bengaluru; Editing by Tasim Zahid